START WITH WHAT YOU LOVE
From Your First Bale to a Repeat-Purchase Reselling Business
Your first bale is a test, not a commitment. Its job is to tell you what your customers buy, at what price and how fast, so the next order is based on evidence rather than hope.
Repeat buying keeps a resale business stocked, but only when you can sell the stock profitably and pay for the next order from the business. This guide shows how to tell. For reorder timing and quantities in general, see planning repeat orders.
A FIRST BALE IS A TEST
What to record from day one.
Count everything, then follow each garment until it sells, is marked down or is written off; see recording bale contents.
- Garments received, and how many were unsaleable after inspection.
- Garments listed, sold at full price, sold at a markdown and still unsold.
- The date each piece was listed and sold, so you can see stock age.
- Sales and costs by category and by channel.
HYPOTHETICAL EXAMPLE
The first-bale record.
Hypothetical figures, eight weeks after opening the bale in our beginner’s guide. Everything was paid from 16,700 of cash set aside: 14,700 for the bale ready to sell and 2,000 for selling costs. Sales were 18,900.
Hypothetical example only, not a typical or expected result.
| Line | Garments |
|---|---|
| Received | 200 |
| Unsaleable after inspection | 20 |
| Listed | 180 |
| Sold at full price | 110 |
| Sold at markdown | 40 |
| Unsold after eight weeks | 30 |
THE NUMBERS
What the record tells you.
Cost per saleable garment is higher than cost per garment received, because the unsaleable pieces still had to be paid for. Use the higher figure when you price.
Sell-through, average price and markdown share show whether demand is strong; weekly sales tell you how much stock you can move.
Hypothetical example only, not a typical or expected result.
| Measure | Value |
|---|---|
| Cost per garment received (14,700 ÷ 200) | 73.50 |
| Cost per saleable garment (14,700 ÷ 180) | 81.67 |
| Sell-through of saleable garments (150 ÷ 180) | 83.3% |
| Realised average price (18,900 ÷ 150) | 126 |
| Share sold at markdown (40 ÷ 150) | 26.7% |
| Garments sold per week (150 ÷ 8) | 18.75 |
KEEP THESE APART
Revenue, profit and cash.
Revenue
Everything customers paid. It is not what you earned.
Contribution margin
Price minus the cost of the garment and the costs of selling it. It shows what each sale adds.
Profit
Contribution minus running costs and written-off stock, for the period.
Cash for the next order
What is actually in the account, minus your reserve. Unsold stock is not cash; see planning cash flow.
Inventory age
How long unsold pieces have been listed. Old stock is a warning sign; see managing unsold inventory.
WHAT WORKED
Find the winners before you reorder.
Split your figures by category and channel. The next order should buy more of what sold and less of what did not; sell-through rate is the measure to compare.
- Which categories sold fastest and at the best prices?
- Which sizes and styles were left over?
- Which channel sold more: a stall, online listings or social media?
- Which pieces needed markdowns, and why?
REORDER THRESHOLDS
Reorder only when all four are met.
Stock cover
Saleable stock on hand will last only a few more weeks at your measured selling rate.
Cash
Cash covers the full order, including freight and preparation, and still leaves your reserve.
Sell-through
Sell-through is at or above the level your pricing assumed.
Stock age
Old stock is moving, not piling up.
HYPOTHETICAL EXAMPLE
A sound reorder and an over-purchase.
After eight weeks the business has 18,900 in cash, assuming the owner has taken nothing out, and sells about 18.75 garments a week. It considers buying one bale like the first, or three at once because the first went well. Garment counts include pieces that may prove unsaleable.
One bale leaves a reserve and about 12 weeks of stock. Three bales cost more than the business has, and would take about 34 weeks to sell at the current rate, with cash tied up the whole time. A good first bale does not mean three will sell three times as fast.
Hypothetical example only, not a typical or expected result.
| Line | Value |
|---|---|
| Cash before the order | 18,900 |
| Order, ready to sell | 14,700 |
| Cash left | 4,200 |
| Garments on hand (30 + 200) | 230 |
| Weeks of stock at 18.75 a week | about 12 |
| Line | Value |
|---|---|
| Cash before the order | 18,900 |
| Order (3 × 14,700) | 44,100 |
| Cash shortfall | −25,200 |
| Garments on hand (30 + 600) | 630 |
| Weeks of stock at 18.75 a week | about 34 |
BEFORE YOU REORDER
Questions to ask any supplier.
Ask these every time, even with a supplier you have used before; see also what to get in writing.
- Is the category and grade I bought before available now, and is it described the same way?
- What are the current price, freight and preparation costs?
- When could it be delivered, and what are the payment terms?
- What happens if the contents differ from the description?
- Can I see photos or a sample before a larger order?
ASKING BALEMATRIX
Bring your numbers.
A previous order does not mean the same stock is available again. When you enquire, tell us what sold, the categories and quantity your figures support and your delivery location, and ask about current availability, pricing and terms.
- Share the categories that sold and those that did not.
- Ask for the price and terms in writing before you pay.
- Order only the quantity your cash and selling rate support.
NEXT STEP
Ready to plan a reorder?
Send your categories, the quantity your numbers support and your delivery location, and ask about current availability, pricing and terms.
Hypothetical figures for illustration only, not a forecast or a promise of returns. Not financial advice; your results depend on your own stock, prices, costs and market.